The MMC UK Pension Fund has completed a u00a32bn ($2.5bn) longevity swap, covering the liabilities of 14,500 pensioners, and deferred members.
According to a press release announcing the move, the longevity swap is the second largest deal of its kind in the UK covering more deferred than active scheme members.
The swap is insured via a Guernsey-based incorporated cell company Fission Gamma IC Limited, managed by March Captive Solutions Guernsey,. The swap was simultaneously reinsured by Munich Re.
This is the second longevity swap deal which has been struck by the UK arm of the US metals distributor. In 2017 MMC conducted a u00a33.4bn swap covering pensioner obligations with Canada Life Reinsurance and Prudential Financial.
Mercer advised the MMC Pension Fund trustees.
There have been several large scale longevity swaps in the UK this year. In August Reinsurance Group of America agreed a $6.4bn longevity swap with the BT Pension Scheme, while in June lender Nationwide struck a $2.1bn deal with Zurich UK and Prudential Financial.